Bitcoin is on the way to overshadowing gold and overtaking it as a market cap

Bitcoin is on the way to overshadowing gold and overtaking it as a market cap - bitcoin goldSome analysts at investment management firm Ark Invest firmly believe that Bitcoin will effortlessly outpace gold's market capitalization, taking the position of the highest-valued asset in the market.

Ark Invest was founded and is chaired by Cathie Wood

With a market capitalization of just over $ 1 trillion, BTC has proven resilience in the fight to the top over the years as one of the most valuable assets.

For a worthless currency until a few years ago, the asset has come a long way, with its recent growth heavily influenced by the economic woes triggered by the pandemic.

Speaking on the subject, Ark Invest analyst Yassine Elmandjra noted that the analysis on the basis of comparative values ​​and market capitalizations of both BTC and gold shows that the former is able to outperform the latter even though its market capitalization is currently lower.

Here is what he said: “If you look at gold, it has a market cap of $ 10 trillion, while bitcoin is worth a tenth. However, if we believe that bitcoin is a 100 times better version of gold, then it is quite safe to say that there is a strong possibility that bitcoin will surpass it. "

As of 2020, with a market capitalization of $ 130 billion and a value of approximately $ 7.000, BTC ended the year with $ 500 billion and a value of $ 29.000. Significant growth, but nothing compared to the progress it has made this year, doubling its market capitalization to reach $ 1 trillion in 3 months and reaching an all-time high of around $ 61.000 last month. At this rate, it's not out of place to trust a market cap forecast of over $ 10 trillion.

Gold is no longer what it used to be

Gold is going through a rather disappointing period. It plunged 11% this quarter of the year, the worst start for the asset since 1982, according to Holger Zschäpitz, business editor of the German Daily die Welt.

While some analysts attribute this decline to the emergence of BTC, noting that the security offered by BTC in this era of rising inflation concerns has prompted a shift in investments from gold to crypto assets; others like Bloomberg editor Joe Wiesenthal disagree. Wiesenthal, for example, believes gold mismanagement is affected by bond yields and has nothing to do with Bitcoin.

One of America's largest investment banks, JPMorgan, believes that "institutional investors are choosing Bitcoin over gold," with the latter seeing a $ 20 billion outflow of funds and BTC experiencing a cash flow of $ 7 billion from mid-October last year.

Whatever the reason, the general consensus is that gold is on the decline and BTC is experiencing tremendous growth. This further influenced the growing interest in BTC, pushing it beyond all optimistic expectations.

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